American Water Works Co. Inc.
AWK
Market Cap$24.67B
Close$
Earnings Call Q3 2024
October 31, 2024 - AI Summary
**Strong Earnings Growth**: American Water reported Q3 2024 earnings of $1.80 per share, up from $1.66 in Q3 2023. Year-to-date earnings were $4.17 per share, compared to $4.03 in the same period last year. The company reaffirms 2024 EPS guidance of $5.25 to $5.30, reflecting the success of its ongoing operations and strategies.
**2025 EPS Guidance and Growth Rate**: The company has initiated 2025 EPS guidance at $5.65 to $5.75 per share, indicating an expected growth rate of 8% compared to normalized 2024 EPS. This growth is attributed to the increasing rate base and ongoing capital investments. Long-term targets remain intact, with expected compounded annual growth rates for EPS and dividends between 7% to 9%.
**Increased Capital Investment Plan**: American Water plans to invest $3.3 billion in 2025 and $17 billion to $18 billion from 2025 to 2029. This reflects a $1 billion increase over previous projections and includes significant spending to comply with EPA's lead and copper rule improvements. The heightened investment aligns with their commitment to infrastructure renewal and regulatory compliance.
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$119.16
2.2% downside
Current Fair Value
2.2% downsideOvervalued by 2.2% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $24.67 Billion |
|---|---|
| Enterprise Value | $37.90 Billion |
| Dividend Yield | $3.0025 (2.3716429699842%) |
| Earnings per Share | $4.89 |
| Beta | 0.7 |
| Outstanding Shares | 195,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 25.11 |
|---|---|
| PEG | 300.44 |
| Price to Sales | 5.3 |
| Price to Book Ratio | 2.3 |
| Enterprise Value to Revenue | 8.39 |
| Enterprise Value to EBIT | 25.66 |
| Enterprise Value to Net Income | 38 |
| Total Debt to Enterprise | 0.35 |
| Debt to Equity | 1.29 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About American Water Works Co. Inc.
7,100 employees
CEO: Walter Lynch ith a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,800 dedicated professionals who provide regulated...